The European unit of Usha Martin Ltd. plans to buy a distribution firm in Rotterdam, the Netherlands, for 3-4 million euros and hopes to close the deal by the end of this month, a company source said.
“This company has been sourcing high-end wire ropes from different manufacturers. So the benefits will come to our company,” the source said.
The company has distribution centres at Glasgow in UK, Houston and a location in the west coast in the United States. U-Tor Construction Steel in north India for 8.5 billion rupees.
In 2000, Usha Martin bought Brunton Shaw, a special wire ropes manufacturer in the UK, which now has production of 7,000 tonnes a year.
Usha Martin, which focuses on the West, derives 28 percent of its standalone revenues from exports.
Separately, The company plans to invest $10 million in the next three years to raise its capacity especially in heavy duty specialty ropes for sub-sea applications.
The funding would be mix of debt and internal accruals, “It is a greenfield project and we are adding a new line at the existing Brunton Shaw facility,” the official added. “There is higher demand now from the oil field sectors.”
Source : Yahoo Finance